where net worth includes equity capital of the company, reserves and surplus.
The intrinsic value thus arrived may vary due to the accounting policy followed
by the company.

Example:

What is the book value of the firm having a net worth of Rs.2500 crore and the
number of shares outstanding is 50 crore?Intrinsic Book Value
= Rs.2500 crore / 50 crore
= Rs.50

Liquidation Value of the Share
Approach :

The value of the shares on liquidation of the company is the company is
calculated after deducting the amount to be paid to the creditors & the
preference shareholders.

Thus the value of the share is given by Value = (Liquidation value of the company - Amount
paid to be the creditors
& preference shareholders) / no. of equity shares outstanding.

Example:
The company XYZ LTD. is liquidated realizing Rs.10 crore from liquidation of it
assets. The company had to pay Rs.1 crore to the creditors. What is the value of
the shares, if the total outstanding number of share is 45 lakh.Value of each share = (Rs.10 crore - Rs.1 crore)/ 45 lakh share
= Rs.20